- XRP reacted strongly to a key demand zone after the CPI drop, but liquidity above remains untouched
- If XRP doesn’t move quickly, additional liquidity below could weaken the bullish setup
- Market uncertainty remains high—both breakout and retracement scenarios are possible
In our last analysis, we identified a strong demand zone below the current price, where liquidity had been accumulating.
As expected, XRP reacted impulsively after tapping into this area, following the release of the Consumer Price Index (CPI) data.
What is the CPI, and Why Does It Matter?
The Consumer Price Index (CPI) measures inflation by tracking price changes in goods and services. High CPI numbers can lead to tighter monetary policy, impacting risk assets like crypto. This time, the CPI release triggered a quick downward move in XRP, filling liquidity before bouncing back up.
However, there’s still untouched liquidity above, which could attract the price upward. If we see a similar scenario playing out, XRP might react to a new demand zone before making another attempt to claim that liquidity.
Key Levels to Watch
But there’s a catch—if the price takes too long to react, additional liquidity could build below, reducing the probability of a strong bullish move. The next few candles will be crucial in determining the short-term direction.
As always, nothing is guaranteed. The market moves in unpredictable ways, and while these setups are possible, they are never 100% certain. Risk management remains key.
What’s your take on this setup? Will XRP push higher, or is a deeper retrace coming?
Disclaimer: The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk. We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions. Read more
